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Life Insurance

Lizard King

Lizard King

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Sep 9, 2010
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Anyone know anything about the different types of policies? I have a 65 Life I bought probably 10 years ago, not really sure, but I pay about $150 a month and I have no idea what this policy actually does. I know at some point the interest on the policy starts to pay the policy itself, or I can withdraw against the policy, I just haven't have the time to read up on it and wonder if I should put this on hold and move this $150 to an IRA since I get a very decent life insurance policy through work.
 
FlyingDragon

FlyingDragon

VIP Member
Nov 4, 2010
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So I will guess and say u have a whole life policy.....Your money is better put into the market.....The return u receive from the whole life policy is not that good compared to what u could get in the market yourself....Get a term life policy and invest the difference ($150 - Term policy prem)....You could also call your insurance agent and have him explain it to u....He would know best....
 
monsoon

monsoon

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Nov 1, 2010
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Cash this in immediately. Actually first find a term policy from a broker, not an agent. Your agent sold you this crap in the first place. Then as FD stated, invest the $125 a month left over.
 
graniteman

graniteman

MuscleHead
Dec 31, 2011
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Yep, cash that shit out and put it under your bed or send it to me. Either way you'll get the same out of it.
Get term life LK, whole is a terrible investment unless you have money to burn. Go buy yourself some shares in Alibaba or Berkshire Hathaway
 
graniteman

graniteman

MuscleHead
Dec 31, 2011
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Or you could send it to me.

When you get the term life insurance pay special attention to when it expires, your age, and the costs of re-upping OR the cost increases. If you can get it to stretch into your retirement or past that's the way to go. Besides you're an old fart and it ain't that far away!
 
JDUB

JDUB

Senior Member
Mar 26, 2012
129
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If you have great insurance now thru ur current company then I would look into cashing it if they let you.....some are on time lapses so you can't and the do that to protect themselves...

id call them to see....but it really depends on if you feel you have adequate coverage thru ur current job policy....if so then call them and cash that sucka
 
woodswise

woodswise

TID Board Of Directors
Apr 29, 2012
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My partner is a financial planner and he says if you bought it a while ago, it is probably a very good value for the benefit, and might be a good idea to hold onto it. I recommend you speak with a financial planner before you make any rash decisions.

Also, my whole life policies are returning me 5% each year, which in bad years for the stock market, is real nice. Plus it is one of the very safest investments. Even if we had a great depression, I should be able to get 5% per year on it, which would make a huge difference in that situation.
 
monsoon

monsoon

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Nov 1, 2010
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Woods, I like and respect you. Have you considered the actual return to you? There are only two ways that whole life pays off. One, if you die before you've paid for it. Difficult, because the cost of insurance is deducted off the top of your premium. Second, if your investment exceeds the value of the policy. Unlikely unless you bought it 50 years ago. Then you borrow against it and die before you pay it back. Remember, if you die you only get the value of the insurance, not the investment.
 
Lizard King

Lizard King

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Sep 9, 2010
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I bought it off a guy who was friends with the guy who was training me like 10 years ago, didn't realize it had a cash value, now I am interested. I had the money to burn and it sounded good, but I am doing well on my IRA, even in the down years as I moved my money around and very nice policy through work, which I can increase as well.

Guess I will find out what this bitch is worth tomorrow :)
 
graniteman

graniteman

MuscleHead
Dec 31, 2011
6,133
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My partner is a financial planner and he says if you bought it a while ago, it is probably a very good value for the benefit, and might be a good idea to hold onto it. I recommend you speak with a financial planner before you make any rash decisions.

Also, my whole life policies are returning me 5% each year, which in bad years for the stock market, is real nice. Plus it is one of the very safest investments. Even if we had a great depression, I should be able to get 5% per year on it, which would make a huge difference in that situation.

Woodrow, no financial planner worth his pay would recommend whole life as a investment, which is what it is. Term life is insurance , whole life is a way insurance companies make even more money off you and give you a very small cut of what THEY make off your money in ....wait for it...The Stock Market.

5% off your investments annualy is terrible, even in a off market you could double that with little effort. A motto to live by in the market , I learned the hard way. ''When everyone's bailing out, you get in..When everyone's getting in get ready to get out, a correction is right around the corner''.
Even with the ''financial collapse'' ,,,cough ..cough (invented by democrats), but that's neithe rhere nor there, people have re-couped all their losses plus ...IF they stayed the course
 
woodswise

woodswise

TID Board Of Directors
Apr 29, 2012
4,334
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Woodrow, no financial planner worth his pay would recommend whole life as a investment, which is what it is. Term life is insurance , whole life is a way insurance companies make even more money off you and give you a very small cut of what THEY make off your money in ....wait for it...The Stock Market.

5% off your investments annualy is terrible, even in a off market you could double that with little effort. A motto to live by in the market , I learned the hard way. ''When everyone's bailing out, you get in..When everyone's getting in get ready to get out, a correction is right around the corner''.
Even with the ''financial collapse'' ,,,cough ..cough (invented by democrats), but that's neithe rhere nor there, people have re-couped all their losses plus ...IF they stayed the course

Not surprisingly you mis-read my post. I did not say my partner recommended whole life as an investment. I just said that as part of overall financial planning, whole life has a place, and if LK bought it when he was young, it may turn out to be a good value for the money, especially compared to purchasing new life insurance now.

Any person who is taking an honest look at their financial picture will understand that insurance can and does play an important role in creating security for your family.

I frequently recommend to my estate planning clients, that they consider life insurance sufficient at a minimum, to cover their debts, so they will leave their surviving family debt free. Also disability insurance is very important to a person's long term financial security. Anyone with a decent job and a family to take care of, should consider disability insurance. A good policy can cost as little as $100 per month and give you full income for life (with inflation adjustments), in the event you become totally disabled.

So, for example, if you purchase term life insurance of $500,000 for $150 per month, and die within 10 years, your family will be leagues ahead of where you would have been had you put the $150 per month into investments.

And if you buy whole life insurance and let its cash value grow, you can borrow against it in the future, and never have to repay a thing, and your family can still get the full life insurance benefit when you die. My business partner told me his life insurance was by far the best investment he has made in his 40 years of investing. He had the security of a life insurance policy, then he put his son through college by borrowing against it, then he borrowed even more when he got cancer. And now, the policy still has the full death benefit.

So I would suggest any financial planner who is not recommending insurance as part of the overall picture has his head up his a$$, or is simply trying to sell products that generate the financial planner better commissions.
 
Last edited:
Lizard King

Lizard King

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Sep 9, 2010
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I think I pay $150 a month for a $100K policy which I see as pretty useless since I get like $750K through work and can up that to $1M for pennies on the dollar.
 
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